What’s Floating in Your Cloud? Why Your Digital Life Matters When You Pass Away.
When you think about what happens to your estate when you die, you firstly think about your home, savings, cars and other physical possessions.
But what about everything that exists online?
Don’t just think about what’s in your house. Think about what’s in your phone, on your computer and floating in the cloud.
Digital assets as part of your estate planning conversation
The UK’s Property (Digital Assets etc) Act 2025 formally recognises certain digital assets as capable of being treated as personal property. The most immediate impact of the Act is the removal of uncertainty. Digital assets now clearly form part of a person’s estate that can be gifted, included in residue, held in trust, and valued for tax planning. This clarity also strengthens remedies where assets are hidden or misused. Digital assets have already been taxable under HMRC guidance, the Act reinforces their treatment as property for inheritance tax purposes.
What digital assets and accounts do you have?
Start by making a simple inventory of your digital life. Think about:
- Online bank and investment accounts
- Cryptocurrency and NFTs
- Websites, domains and online businesses
- Social media and email accounts
- Photos, videos and documents stored in the cloud
- Online subscriptions and memberships
- Digital collections or other valuable online accounts
- Computers, phones, tablets and other devices that contain or provide access to your digital assets
Who will look after your digital property and accounts?
Digital assets can easily be overlooked after someone dies, particularly if nobody knows they exist. Make a list of your important accounts and assets, together with instructions about what you would like to happen to them. Don’t forget those accounts that contain photographs or memories that you want preserved.
Keep sensitive access information somewhere secure, such as in your safe box alongside your will.
Make sure your executors or another trusted person know where the information is kept and how to access it when it is needed.
For anyone planning their estate, the message is simple:
Don’t just think about what’s in your house. Think about what’s in your phone, on your computer and floating in the cloud.
A little preparation now can make it much easier for your loved ones to find, protect and deal with your digital life when the time comes.
Find out how we can help with estate planning, drafting your will and discussing Lasting Powers of Attorneys.
Contact our Private Client team today on 01728 724737.
